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Hey, Joe. Give EMC the gun and SHOOT IT DOWN - before someone else messes 'round town

You built it up; tear it down while you still can

Comment What should we do about the EMC Federation and the coming retirement of its founder and architect Joe Tucci?

Activist investors want it dismantled to provide more value for shareholders. Nobody sees a replacement candidate for Joe Tucci; someone who could hold the ring while the three strong and capable CEOs that run EMC Information Infrastructure (EMC II), Pivotal and VMware lead and develop their own companies.

So, Joe, if the fracturing of the Federation is inevitable, just crack on and fracture it now.

What does EMC itself actually do? It can be characterized as a holding company for three subsidiaries; EMC II, Pivotal and VMware, with EMC II having two subsidiaries of its own; RSA and, soon, VCE.

So set them free. Make each one an independent business with their own quoted shares, like VMware, and have EMC become what it already is, a holding company with substantial but minority stakes in each of the three. Take EMC private and kiss Elliott Management goodbye.

Sell three quarters of EMC's 80 per cent stake in VMware, keeping a 20 per cent investment for the EMC holding company. Set up EMC II as an independent business with its own quoted shares; give David Goulden his head. Ditto Pivotal, if it is ready. If not then sell substantial stakes to partners, again keeping 20 per cent for EMC.

It's time that EMC departed from the scene. The action is with its children, EMC II, Pivotal and VMware. Set them free, Joe, and retire to the twilight. No one can – or will – grudge you that. Instead they'll applaud you, rightfully, because no one else could have done what you have done.

Yes, Elliott will profit by it, but swipe that irritating flea aside. Let Singer go and bother someone else. There's enough cash around to more than satisfy all your shareholders, if you do this, as well as the one with the biggest mouth.

If somebody is going to break up your federation anyway then get in there first. Who else is better qualified after all, Joe, than you? Go for it, Godfather. ®

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